Socialite Paris Hilton has settled court battle with a Manhattan footwear company named Antebi Footwear.

The 33-year-old hotel heiress has dropped her $1 million lawsuit against Antebi, and the shoe company has dropped their $2 million counterclaim against her, reported Ace Showbiz.

Paris previously accused Antebi, which launched her Paris Hilton Footwear line in 2007, of stiffing her on royalties.

The footwear company then filed a counterclaim against the star of 'The Simple Life', saying she violated her contract by working with a rival company.

The case was originally expected to go to trial next year, but attorneys for both sides jointly filed papers in Manhattan Federal Court, stating the case should be "voluntarily dismissed in its entirety."

Paris' attorney, Michael Weinsten, said that the terms of the deal were kept secret, but "the action was amicably resolved."